The article covers the following subjects:
Highlights and key points
- Main scenario: after the correction ends, consider short positions below the level of 1.3943 with a target of 1.3205 – 1.2981. A sell signal: if the price holds below 1.3943. Stop Loss: above 1.4000, Take Profit: 1.3205 – 1.2981.
- Alternative scenario: breakout and consolidation above the level of 1.3943 will allow the pair to continue rising to the levels of 1.4200 – 1.4400. A buy signal: once the level of 1.3943 is broken to the upside. Stop Loss: below 1.3880, Take Profit: 1.4200 – 1.4400.
Main scenario
Consider short positions below the level of 1.3943 with a target of 1.3205 – 1.2981 once the correction is completed.
Alternative scenario
Breakout and consolidation above the level of 1.3943 will allow the pair to continue rising to the levels of 1.4200 – 1.4400.
Analysis
The fifth wave of larger degree 5 presumably continues unfolding on the weekly chart, with wave (1) of 5 formed and a bearish corrective wave (2) of 5 developing as its parts. On the daily time frame, wave А of (2) is unfolding, with wave of smaller degree i of A formed and a local corrective wave ii of А nearing completion as its parts. Apparently, wave (c) of ii is coming to an end on the H4 time frame, within which wave v of (c) is unfolding. If the presumption is correct, the USDCAD pair will continue falling to 1.3205 – 1.2981 after the correction is over. The level of 1.3943 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 1.4200 – 1.4400.
Price chart of USDCAD in real time mode
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteFinance. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.
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